Florida Insurance Bad Faith: What to Do When Your Insurer Fails You

After a car accident in Miami, you expect your insurance company to hold up its end of the deal. You paid your premiums. You filed your claim. Now you need to be paid so you can cover your medical bills, repair your vehicle, and get your life back on track.

But sometimes insurers do not deliver. They delay processing your claim without reason. They offer settlements that fall far short of covering your actual losses. They deny valid claims based on technicalities or questionable interpretations of your policy. When this happens, you may be the victim of insurance bad faith — and Florida law gives you specific rights to fight back.

What Is Insurance Bad Faith

Insurance bad faith occurs when an insurance company fails to meet its legal obligation to handle your claim fairly, honestly, and promptly. In Florida, insurers have legal duties both to their own policyholders and to third parties filing claims against their insureds.

There are two main types of insurance bad faith in Florida.

First-Party Bad Faith

First-party bad faith occurs when your own insurance company fails to handle your claim properly. This can arise with your PIP (personal injury protection) coverage, your uninsured or underinsured motorist coverage, or your collision and comprehensive coverage.

Third-Party Bad Faith

Third-party bad faith occurs when the at-fault driver's insurance company fails to handle your claim properly. This can include refusing to settle within policy limits when liability is clear — exposing their own insured to an excess judgment.

Warning Signs of Insurance Bad Faith

Not every delay or dispute rises to the level of bad faith. But there are clear warning signs that an insurer may be acting in bad faith.

Unjustified Delays

Florida requires insurers to acknowledge receipt of a claim within 14 days and make a coverage decision within 90 days. Delays beyond these deadlines without a legitimate reason can be evidence of bad faith.

Denial Without Adequate Investigation

If an insurer denies your claim without conducting a reasonable investigation of the facts, that can constitute bad faith. A denial based on assumptions or incomplete information rather than a genuine investigation is a major warning sign.

Unreasonably Low Settlement Offers

Offering an amount that clearly does not reflect the true value of your claim — especially when liability is clear and your damages are well documented — can be evidence of bad faith.

Failure to Communicate

If the insurer does not return calls, fails to respond to letters, or does not provide updates on the status of your claim, that can be bad faith. Insurers have an obligation to maintain reasonable communication with claimants.

Misrepresenting Policy Terms

If an insurer tells you your policy does not cover something when it does, or interprets policy terms unreasonably to deny coverage, that can be bad faith.

Demanding Excessive or Redundant Documentation

Repeatedly requesting the same documentation, demanding unnecessary forms, or creating bureaucratic obstacles to delay payment can be a bad faith tactic.

Your Rights Under Florida Law

Florida has specific laws protecting consumers from insurance bad faith practices.

The Florida Insurance Claims Practices Act

Florida Statute § 624.155 allows policyholders to file a civil lawsuit against their own insurer for bad faith. Before filing suit, you must send a "Civil Remedy Notice of Insurer Violation" to the insurer and the Florida Department of Insurance, giving the insurer 60 days to cure the violation.

If the insurer does not correct the problem within that period, you can proceed with a bad faith lawsuit.

Damages Available in a Bad Faith Case

If you succeed in a bad faith case, you may recover more than the original value of your claim. Available damages can include the full amount of your original claim, extra-contractual damages such as emotional distress and lost income caused by the delay, attorney's fees and court costs, and in cases of especially egregious bad faith, punitive damages.

The possibility of extra-contractual and punitive damages is what makes bad faith lawsuits so powerful — and why insurers often rush to settle once a bad faith claim is filed.

Steps to Take If You Suspect Insurance Bad Faith

Document Everything

Keep a detailed log of every interaction with the insurer. Write down the dates and times of phone calls, the names of representatives you speak with, and a summary of what was said. Save every letter, email, and document the insurer sends you.

This documentation can be critical evidence if you eventually file a bad faith lawsuit.

Follow Up in Writing

Whenever possible, communicate with the insurer in writing — email or certified mail. This creates a record of what was said and when. If the insurer calls you, follow up the call with an email summarizing what was discussed.

Do Not Accept an Unfair Settlement

Once you accept a settlement and sign a release, you generally give up your right to seek additional compensation. Do not accept an offer that does not adequately cover your losses, even if the insurer is pressing for a quick resolution.

Consult an Attorney

If you suspect insurance bad faith, consult with a personal injury attorney as soon as possible. An attorney can review your policy, evaluate the insurer's conduct, send the required civil remedy notice, and if necessary, file a bad faith lawsuit on your behalf.

The Difference Between a Claim Dispute and Bad Faith

It is important to understand that not every dispute with an insurer constitutes bad faith. Insurers have the right to investigate claims, question liability, and negotiate the value of damages. A good-faith dispute over the value of a claim is not the same as bad faith.

Bad faith generally requires showing that the insurer acted unreasonably — not just that they made a decision you disagree with. The line between a legitimate dispute and bad faith can be blurry, which makes attorney guidance especially valuable.

Get Help From 305-EN-DOLOR

Dealing with an insurer that is not acting in good faith is frustrating and exhausting, especially when you are already recovering from accident injuries. At 305-EN-DOLOR, we connect Miami accident victims with personal injury attorneys who understand Florida's insurance bad faith laws and know how to hold insurers accountable.

Call 305-EN-DOLOR or send us a WhatsApp message right now for a free consultation. You pay nothing unless we win your case.